The firm said it ended up being 18% thinner and 20% lighter versus iPhone 4S. However, it does not feature an NFC (near field communication) chip to let it make touchless payments.
Apple said the handset would work on Everything Everywhere's (EE) 4G LTE network in the uk.
The news is likely to supply EE - which runs a nearby Orange and T-Mobile services - a bonus against its rivals which is not going to launch the higher-speed data service until 2013.
"I think it's obviously what another networks feared would happen, " said Matthew Howett, a telecommunications analyst at Ovum.
"The question will likely be how many non-EE customers help make the switch. "
Apple stated the handset would ship on 21 September.
Faster speeds
The modern screen offers a 16: 9 proportion, matching that of widescreen tv sets.
But its 4in (10. 2cm) size remains smaller than rival displays employed by Samsung, Nokia, Motorola, LG, HTC as well as Sony's flagship models.
Phil Schiller - Apple's vice president of around the world marketing, who unveiled the device - said existing apps could be shown with black borders till developers updated their products.
Keep reading the main story
image associated with Rory Cellan-Jones Analysis Rory Cellan-Jones Technology reporter
For Apple, the latest version with the phone which supplies the lion's share of its enormous profits was always planning to be crucial to its economic future.
For the rest with the mobile phone industry, today's launch was something to bother about - how would it adjust this fast-shifting landscape?
With so many leaks there were few surprises relating to this bigger, thinner iPhone.
A much better camera, more uses for your voice activation feature Siri, and its own mapping method with turn-by-turn navigation all soon add up to an impressive device.
But Android mobile phone users, and in particular fans associated with Samsung's best-selling Galaxy S3 will say Apple is merely playing catch-up. Features like the ability to shoot a panorama have been on the phones for years.
That won't stop the new phone as a big hit - with a lot of existing users now likely to be nearing the end of their own contracts.
Those who've got used towards the iOS system will be keen to stay with it - while for newcomers towards the smartphone, the iPhone will be the shiny new thing.
The impact that Apple's latest model has on the UK mobile phone market is very intriguing. When Apple announced that its 4G iPhone 5 would work on EE's new 4G system, you could hear the cheers in the headquarters of that company.
But Vodafone and O2 - still furious that their rival may be allowed a head-start on 4G, will likely be even crosser now.
The handset also comes with a new Apple-designed chip, called your A6. Mr Schiller suggested this caused it to be twice as powerful as the earlier model.
The camera is an eight megapixel model - much like in the iPhone 4S, as well as a lower specification than LG and Sony's newest devices.
However, Mr Schiller said the apparatus and associated software meant your iPhone would create better images in low light than prior to.
The handset also uses a whole new, smaller, socket for its charger. This means owners will have to use an adapter to plug the unit into existing speakers and additional equipment. The adapter is listed as being £25 on Apple's site.
The handset will not offer wireless charging like Nokia's Lumia 920.
It'll be sold with either 16 gigabytes, 32GB or perhaps 64GB of storage. The basic model will be sold for £529 in the uk, but the figure will be lower if bought that has a network contract.
In addition to launching the revolutionary model, Apple will continue to ship versions with the iPhone 4S and the iphone, but is phasing out 2009's apple iphone.
Reworked iTunes
Despite the proven fact that the iPhone 5 lacks several features found on its rivals, one analyst for the presentation thought it would prove popular.
"There are unprecedented numbers of pent-up consumer demand that will certainly ensure it eclipses all earlier iPhone launches, " said Bill Wood from CCS Insight.
"Newly rebranded UK network EE will likely be delighted by the fact the iPhone 5 supports the correct flavour of 4G LTE technology. "
However, another industry watcher thought that the firm might have made an error in judgment by rejecting new tech to make the model thinner.
"The decision to omit NFC inside the iPhone 5 could cost Apple mackintosh, " said Fred Huet, managing director at Greenwich Consulting.
"It is merely a matter of time prior to a smartphone replaces the plastic minute card, and by skipping this technology, Apple may have missed a valuable opportunity to take the lead with this market.
"With over 400 million active credit-based card accounts on file, Apple had a prime possibility to convert its customers using a sleek mobile payment system to the iPhone. "
iPhone 5 with map Apple-designed maps become available on iOS 6 from 19 Sept
Apple also announced iTunes, it is media player and store pertaining to Macs and PCs, was being redesigned and could be released in October, and it also unveiled new iPods.
Big earner
The most up-to-date iPhone's performance will prove crucial to Apple's fortunes.
According towards the firm's most recent earnings statement the iPhone and related products and services and accessories accounted for 52% associated with $120bn (£74bn) total net sales on the nine months running up to be able to July - 98 million handsets were sold for the reason that time.
That has helped enhance its share price to fresh heights. At the end of a couple weeks ago the firm was worth $637. 85bn dependant on its share price. That was the highest such valuation to date if you do not adjust Microsoft's 1998 figure pertaining to inflation.
However, competition is intensifying. While Apple's margins may be wider, Samsung's handset sales are growing for a faster pace.
According to info from IDC the South Korean firm accounted for 43. 6% with the Western European smartphone market between April and June in comparison to Apple's 19%.
The figures will have been skewed by the fact Samsung offers more models and the Galaxy S3 was a newer device versus equivalent iPhone, but one sector watcher said the rivalry could intensify over coming months.
"Samsung may be very efficient pushing and promoting their devices offering the greatest commissions to sales people, " Francisco Jeronimo, research manager with IDC, told the BBC.
"The momentum they are gaining with consumers is extremely high and people see it like a very innovative brand - and customers are clearly searching for innovation rather than just refinements. Samsung is likewise likely to make further increases by making price cuts prior to Christmas. "
Apple's stock closed 1. 4% higher
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